SEATTLE, Aug. 13, 2019 /PRNewswire/ -- Private
companies like Airbnb and Palantir have been criticized for being
vague and non-transparent about their upcoming IPOs, yet they have
won investor confidence who are willing to dump millions of dollars
the day of their IPO. How do businesses like them that start off in
a garage become investor sweethearts? Waccal discovers that the
core of their business success is investor relations and it did not
happen overnight.
The definition of successful private company investor relations
as demonstrated by the action of successful companies like Slack
is: transparency.
The biggest risk for investors is the information asymmetry,
meaning the information that the founders have but are not sharing
with investors. This increases the investor's risk and results in a
higher cost of capital for the company raising capital. Successful
companies have mastered the art of transparent communication and
their cost of capital has decreased over the years. This means less
dilution for current investors and more capital at higher valuation
for the company. It allows companies like WeWork to raise billions
in funding without losing control of their company and they
leverage their capital to outpace any competitor.
Waccal's CEO, Ashfaq Mohammed,
also noted that investor relations is not only for the investors.
"When companies are transparent in their strategy, employees
understand how their work aligns to the goals and it increases
employee confidence in their leadership." Since Waccal's launch in
2016, a lot of companies on their platform have created an Investor
Relations page as early as family and friends funding round.
Companies are using the platform to keep their investors and
employees up to date with the latest information. Before investors
fund these companies, they add them to their watchlist so they can
gage the company's communication and interaction before they fully
commit. "Nothing is worse for an investor than to give a company
millions of dollars and then have to chase them down for an update.
They are using Waccal to reduce their risk."
About Waccal
Waccal is the new standard for managing investor relations for
private companies. Businesses of every stage, from new startups to
mature companies use Waccal's suite of tools to provide
transparency, close information asymmetry gaps, and reduce the risk
for investors. Waccal enables businesses and investors to perform
their fiduciary duty with a high degree of candor and
consistency.
https://www.waccal.com
View original content to download
multimedia:http://www.prnewswire.com/news-releases/waccal-cites-transparency-as-key-for-private-companies-going-public-300899574.html
SOURCE Waccal